SoftBank downgraded after WeWork’s US$9.5 billion rescue package- Bloomberg
A Jefferies analyst downgraded SoftBank Corp in its second Hold rating on Friday for engineering WeWork’s $9.5 billion rescue package according to Bloomberg report. Jefferies Group held a ‘buy’ recommendation on it since at least 2014, and moved it to ‘hold citing the increased risk of SoftBank “throwing good money after bad.”
Jefferies joins HSBC Holdings Plc in recommending that investors hold for now.
Once some of the brightest stars in the SoftBank’ portfolio, Uber and WeWork now number among its worst performers. SoftBank is planning to take a writedown to its Vision Fund of at least $5 billion to reflect a plunge in its value, according to people with knowledge of the matter.
Analysts are recommending investors to buy shares in Masayoshi Son’s company even as it faced billions of dollars in writedowns from the WeWork IPO and a sharp decline in shares of Uber Technologies Inc. But now Son’s decision to double down on WeWork has prompted a rare voice of dissent to emerge.
India’s telecom giant Airtel picks up 8.8% stake in tech startup Vahan Inc- Deal Street Asia
Bharti Airtel Ltd has acquired a minority stake of 8.82% in Bengaluru-based software development startup Vahan Inc, said a report by Deal Street Asia. The acquisition of Vahan is a part of Airtel’s Startup Accelerator Program to support the growth of early-stage Indian tech startups.
The initiative will give startups early access to Airtel’s online and offline distribution network, deep market understanding and ecosystem of global strategic partners. Vahan specialises in providing jobs by using artificial intelligence-driven bot (web robot) and a messaging platform, became the first company to join the program.
Startups will also access to advisory services from Airtel’s executive team. Airtel’s scale and digital capabilities around distribution and payment can drive growth for startups that face multiple challenges in scaling up, said Airtel Chief Product Officer Adarsh Nair.
Cool Japan Fund invests US$50M in gojek, despite reported losses- e27
Cool Japan Fund, a Japanese entertainment-dedicated fund, announced an investment of JPY5.5 billion (US$50 million) into gojek, as gojek forays into the entertainment sector with the launch of its video streaming service goplay.
According to an article from Variety, Cool Japan says it will work with Gojek to spread Japanese culture in Indonesia through both the platform’s food delivery and video streaming services.
“[This investment in gojek] was decided under very strict screening,” said Naoki Kitagawa, a former representative director of Sony Music Entertainment (Japan), who became president and CEO of Cool Japan in June last year.
Cool Japan Fund (CJF) Inc. was launched in November, 2013. Funded by both the public and private sectors, the company aims to promote Japanese exports, such as anime and food.
Also read: Following Nadiem Makarim’s resignation, gojek names new leaders
Indian online hotel booking startup MiStay raises funding from ah! Ventures- VCCircle
Founded in 2016 by alumni of IIT-Madras, MiStay Hospitality Pvt. Ltd, which runs online hotel reservations startup, has raised an undisclosed amount from investors including the Mumbai-based ah! Ventures, wrote VCCircle.
The round was also supported by a group of investors led Hyderabad-based entrepreneur, Sumit Nagpal.
Bengaluru-based MiStay said it will use the funds to expand its footprint and grow its leadership team. In 2017, it raised an undisclosed amount in seed funding from Axilor Ventures and a group of angel investors.
It claims to have grown five times since its pivot to the consumer market and says it has achieved operational profitability. It is currently present in 100 cities through 1,500 hotels.
Chinese biggest co-working space provider Ucommune files for US IPO- Deal Street Asia
Beijing-based Ucommune, which was valued at $2.6 billion about a year ago, has appointed Citigroup and Credit Suisse to work on a listing, while Bank of America has a minor role in the deal, as it files for a US IPO, said a Deal Street Asia report.
A prospectus was lodged with the U.S. Securities and Exchange Commission (SEC) in late September, they said, and the company has held preliminary meetings to sound out investors before the formal public marketing process begins.
China’s biggest shared workspace provider Ucommune’s decision to explore a listing has surprised investment bankers given the similarities between its business and that of embattled US rival WeWork, which this week had to be bailed out in a US$10 billion deal after investors soured on an IPO plan.
A decision to go ahead with the IPO will depend on the feedback provided by potential investors, the sources said.
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